Oil prices remained in its familiar range

31 January, 2017

Rising US production continued weighing on oil prices. Besides, a growing number of the US rigs added some downbeat tone in the commodity.

Current situation

Oil prices remained in its familiar range on Monday. The price stayed range bound to higher between 55.50 and 55.15 during the day. The 4 hours chart showed that the price broke its moving averages upwards. The 50 and the 100-EMAs crossed the 200-EMA downwards. The 50 and the 100-EMAs were bearish while the 200-EMA remained neutral in the same chart. The resistance lies at 55.50, the support comes in at 54.50 dollars per barrel.

MACD indicator was at the centerline. If the histogram enters the negative territory, that will indicate sellers’ growing strength. If MACD returns into the positive area the buyers will take control over the market. The RSI stayed within the oversold readings close to the neutral territory.

Trading recommendations

Short term bias indicates selling interest. We expect a firm break below 55.50 handle which could trigger fresh weakness for attack at 54.50 dollars per barrel.

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